Compare current 10-year refinance rates

You should have a good reason for refinancing. Figure out if you’re aiming to reduce your monthly payment, save on your overall interest charges or tap into equity to pursue other financial goals. Keep in mind that refinancing to a 10-year mortgage — especially if you currently have a 30-year loan — could result in a much higher monthly payment. Use our mortgage refinance calculator to estimate your new monthly payment.

Refinancing isn’t a guarantee – you’ll need to qualify for the loan just as you did for your original mortgage. The higher your credit score, the better refinance rates lenders will offer you — and the better your chances of underwriters approving your loan. While there are ways to refinance your mortgage with bad credit, if yours is borderline, spend a few months boosting it, if you can, before you start the process.

Your home equity is the total value of your home minus what you owe on your mortgage. You may be able to refinance a conventional loan with as little as a 5 percent equity stake, but you’ll get better rates and pay fewer fees — and you won’t have to pay for private mortgage insurance or PMI — if you have at least 20 percent equity. This isn’t just about how much of your principal you’ve paid. Get a sense of how much your home is worth to see if price appreciation has impacted your stake in the property.

Getting quotes from at least three mortgage lenders can save you a ton of money. Bankrate’s refinance rate table lets you comparison-shop loans to help you find the best fit. It’s not just the rate, though; pay close attention to the closing costs and fees to figure out how much you’re going to have to pay upfront.

Gather recent mortgage statements, pay stubs, federal tax returns, bank and brokerage statements and anything else your mortgage lender requests. Your lender will also look at your credit and net worth, so disclose all your assets and liabilities right away. Having all your documents ready before starting the refinancing process can make it go more smoothly and often more quickly.

Mortgage lenders typically require a home appraisal, similar to the one done when you bought your house, to determine its current market value.

The closing disclosure, as well as the loan estimate, will show how much you’ll pay in closing costs. Unless you’re planning to roll your closing costs into the new loan, you’ll be responsible for this amount of closing. You may need to pay 3 to 5 percent of your total loan at closing, although refinancing closing costs are typically cheaper than those for a home purchase.

Store copies of your closing paperwork in a safe location and set up automatic payments to make sure you stay current on your refinanced mortgage.